Md. Supreme Court Says Lower Court Lacked Jurisdiction to Void Ad Tax

The Maryland Supreme Court overturned a lower court’s ruling that the state’s digital ad tax is unconstitutional. In a four-page order Tuesday, the court agreed with the state that the Circuit Court for Anne Arundel County lacked jurisdiction because plaintiffs Comcast and Verizon failed to exhaust all their administrative remedies. The Supreme Court vacated the lower court’s March 14, 2022, order denying the state’s motion to dismiss, an Oct. 21 order partly granting the ISPs’ motion for summary judgment and denying the state’s motion, and the Nov. 18 final declaratory judgment. The state high court remanded the action to the circuit court with directions to dismiss. Writing the order, Chief Justice Matthew Fader said a majority of the court concurred and a forthcoming opinion will explain reasons for the decision. The Maryland Supreme Court decided the case just days after questioning parties on the administrative remedy issue at oral argument (see 2305050044). In a statement, Maryland Attorney General Anthony Brown (D) applauded the court “for acting quickly because the revenues generated by this tax will help us provide our children the best education possible for success.”